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Offshore Trusts Report: Isle of Man

Legal Framework and Formation Rules and Fees

The Isle of Man law of trusts is based on English law and is to be found in the following acts:

  • Trustee Act 1961

  • Variation of Trusts Act 1961

  • Perpetuities and Accumulations Act 1968 (adoption of the Hague Convention)

  • Recognition of Trusts Act 1988

  • Trusts Act 1995

  • Purpose Trusts Act 1996

  • Fiduciary Services Acts 2000 and 2005

  • Trustee Act 2001

In addition, being a common law jurisdiction, there is a considerable amount of case law (mainly English) which is persuasive authority for the Manx courts. The distinctions between English law and Manx trust law arise principally from the fact that the Isle of Man has not adopted certain provisions of English trust law, for example, those relating to restrictions on accumulation of income. Appeal from the Isle of Man courts is to the Privy Council in London.

Trusts do not need to be registered unless they involve real estate on the island, when settlements inter vivos must be registered, or are public, i.e. charitable trusts, in which case they must file annual audited accounts, and are subject to supervision by Her Majesty’s Attorney-General in the Isle of Man. There are no other statutory accounting or auditing requirements and there is no need to file tax returns. However, trustees are obliged by law to inform the Assessor when there is, or may be, an Isle of Man income tax liability. The Isle of Man Income Tax Department issued Practice Note 160/09 in October 2009 to provide additional guidance on the tax obligations of trusts.

It is possible to obtain an advance clearance from the relevant registry based on a draft trust deed so that the identity of the settlor and the beneficiaries can be kept totally confidential. The maximum perpetuity for Manx trusts is generally 150 years (80 years for a purpose trust). There are no provisions for non-recognition of foreign judgements. Asset protection trusts are not available; however, it has been established in law that if transfers are made honestly, they will stand up to future claims.

The Trusts Act 1995 secured the position of trusts established in the Isle of Man in the face of challenges in the applicable governing law by other jurisdictions, particularly in the area of 'forced heirship'.

   

The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

New Zealand

New Zealand: Legal Framework and Formation Rules and Fees
New Zealand: Review of the Law of Trusts
New Zealand: Taxation of Trusts

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees

 


Isle of Man News

IoM Consults On Funds Sector Rules Monday 22/5/2017 The Isle of Man Financial Services Authority, which supervises the island's financial services sector, is seeking feedback on draft guidance dealing with the governance of collective investment schemes.

Record Turnout For Manx E-Gaming Summit Wednesday 14/9/2016 The Isle of Man recently held its 13th annual E-Gaming Summit, which looked at regulatory challenges and opportunities and emerging trends in Fintech, data, cyber security, and blockchain technology.

IoM Companies Register Celebrates Digital Milestone Monday 9/5/2016 The Isle of Man Companies Registry has announced that it has incorporated its first company through its new online service.

International Support For Beneficial Ownership Info Exchange Wednesday 27/4/2016 More than 20 jurisdictions have signed up to a pilot project to exchange data held on beneficial ownership registers and registers of trusts, according to UK Chancellor George Osborne.

OFCs Join G5 Beneficial Ownership Initiative Monday 25/4/2016 Bermuda, Gibraltar, and the Isle of Man Governments have agreed to support an initiative on the automatic exchange of beneficial ownership information, which is being spearheaded by the five largest economies in the European Union.

IoM Rejects Public Beneficial Ownership Register Friday 26/2/2016 The Isle of Man has decided that it will not introduce a public register with information on the beneficial ownership of companies.

Gibraltar To Introduce Foundations Wednesday 28/10/2015 The Government of Gibraltar has launched a consultation on the introduction of new legislation to permit the creation of private foundations.

Director Appointed To IoM's New Central Registry Wednesday 12/8/2015 The Isle of Man has appointed a Director to lead the island's new Central Registry, after the amalgamation of several other registries with the Companies Registry earlier this year.

DeMontford Bell Expands Malta Operations Wednesday 15/7/2015 DeMontford Bell, the UK-headquartered financial introducer, has announced that it is to expand its permanent operations in Malta to support the high volume of business migrating there.

IoM Forms First Company Exclusively With Bitcoin Capital Wednesday 22/10/2014 The Isle of Man has enabled the formation of the first company with Bitcoin capital, Garigus Limited, as part of the territory's efforts to foster the creation of a niche market centered on digital currencies.